Gottschalks Makes Offer For Lamonts Leases California-Based Retailer Could Gain Control Of Stores By July

Seeking to expand its Northwest presence, California-based retailer Gottschalks Inc. signed an agreement Monday to buy all of Lamonts Apparel Inc.’s 38 department stores.

Under the agreement, Gottschalks will pay $19 million for all of Lamonts’ store leases, fixtures and equipment, said Lamonts spokeswoman Rivian Bell.

There are two Lamonts stores in Spokane, one at Shadle Center on the North Side, the other at Manito Shopping Center on the South Hill.

Lamonts no longer holds a lease at its former downtown store location at Riverside and Wall.

Lamonts store managers and employees will be offered jobs with Gottschalks, but Lamonts’ 115 corporate employees in Kirkland, Wash., will lose their jobs.

Gottschalks Senior Vice President and Chief Financial Officer Michael Geele said Tuesday his company’s stores compare with Federated-owned Bon Marche stores.

“We offer moderate to better brand-name fashions,” he said, adding the stores carry labels such as Liz Claiborne, Carol Kane, Tommy Hilfiger, Esprit and Ralph Lauren.

Gottschalks, based in Fresno, owns 42 stores and 20 specialty stores, primarily in California. Its only Washington store is in Tacoma. In 1992 the company considered entering the Spokane market by purchasing the bankrupt Frederick & Nelson’s leases, but backed out of the deal.

Gottschalks is not purchasing Lamonts’ merchandise. That merchandise - valued at $40 million - will be liquidated in early May, said Bell.

Lamonts filed for Chapter 11 reorganization in January, and Bell said the company has $36 million in unsecured debts, primarily with vendors.

“Creditors will not get 100 cents on the dollar,” she said. “It is very unlikely that will happen.”

If the sales agreement is approved by federal bankruptcy court on May 15, Gottschalks will assume ownership of Lamonts stores in July.